Eurozone’s preliminary Harmonized Index of Consumer Prices (HICP) data for October arrives at 4% Year-on-Year (YoY), as expected, higher than September’s final reading of 3.8%. On a monthly basis, inflationary pressures grew at a moderate pace of 0.4% against the prior release of 0.6%.

The core HICP – which excludes volatile components like food, energy, alcohol, and tobacco – rises in line with estimates and the previous reading of 2.5%. Month-on-month core HICP rose at a faster pace of 0.3% vs. 0.2% in September.

Market reaction

No immediate impact is seen in the Euro (EUR), following the release of the Eurozone HICP data. As of writing, EUR/USD trades 0.6% higher to near 1.1260 due to sheer weakness in the US Dollar (USD).